Although iTunes' firmware update isn't seeing it yet, the iPhone Software 2.0 upgrade for first-gen iPhones is now available. Please note, This file will not work for the iPod touch.
Here is the link to the software update: Update: this is now available through iTunes
KiloWarning: Updating 1.x -> 2.0 automatically erases your iPhone, like a "Restore" operation. You can't update without erasing.
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